Silvergate Capital, a leading provider of innovative financial infrastructure solutions to users in the digital asset industry, has announced that it will delay filing its annual report with the U.S. Securities and Exchange Commission (SEC). The news of the delay has resulted in the fall of the company’s stocks by over 30%.
According to the notice, the bank requested additional two weeks to complete its comprehensive report for the 2022 fiscal year after it noted that it will not make the March 16 deadline. It said it needed the time to allow an unnamed independent auditing firm to carry out checks on its accounting procedures.
Notably, Silvergate has assured that its comprehensive annual report will be prepared in accordance with the accounting policy, without any error.
Once prepared, the chief executive officer, as well as the chief financial officer, will confirm in writing the authenticity of the report. Also, the crypto-focused bank expects to record further losses in the coming months after it sold additional debt securities in January and February.
However, this is not the first time the California state-chartered crypto bank is experiencing a fall in its shares. In December last year, Silvergate’s shares slumped by 9% after the news of a lawsuit filed against the crypto bank for its alleged role in Sam Bankman-Fried and FTX’s misdeeds.
Silvergate Receives Backlash for its ties with FTX
Due to its relationship with the now-bankrupt FTX, Silvergate Capital has received several allegations. The most recent one is the lawsuit filed in the United States District Court of Southern California by Pomerantz LLP on behalf of all investors that purchase Silvergate’s securities between Nov 9, 2021, and Jan 5, 2023.
The crypto-inclined financial institution is also currently being investigated by the United States Department of Justice. Prior to the collapse of Bankman-Fried’s $32 billion exchange, the crypto bank managed a few accounts for the ex-CEO and his companies
Aside from Silvergate, Marathon Digital Holdings, a Bitcoin (BTC) mining company, also postponed the publication of its financial reports recently. The company announced the cancellation of its conference call schedule and the postponement of the publication of its fourth-quarter financial result for the year 2022 after the SEC discovered some accounting errors.